There’s a fair bit of self interest in that decision
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Never thought I’d see NewsCorp show anything other than negativity to the ABC.
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Joint statement on News Media Bargaining Code
An Opportunity Too Important to Miss
Australians need a strong and vibrant news media sector now, more than ever. Through bushfires, floods and the COVID-19 pandemic, Australians have turned to local news organisations across radio, TV and print as their trusted source of information.Australians also know that trusted local news sources are under threat. Many have closed, forever silencing local voices.
The global digital platforms should care about the local media landscape. They should care about ensuring the sustainability of the local news media sector.
Why? Because they benefit from it – enormously. But the financial ledger in producing the content is currently very one-sided.
ACCC finds Google and Facebook should pay
The ACCC spent two years investigating the impact of Google and Facebook on the sustainability of the news media sector. It forensically examined their relationship with news media businesses and their impact on the advertising market.The ACCC’s ground-breaking Digital Platforms Inquiry concluded that the decline over time in public interest journalism outlets in Australia resulted from a drop in traditional media advertising revenues. But as local news media businesses revenues were reducing, the advertising revenues of both Google and Facebook were increasing exponentially.
Australians can search for news on Google and share stories with their family and friends on Facebook and Instagram partly because of investment by local news media businesses in quality journalism. Google and Facebook generate significant revenues by collecting data on those users and turning it around in highly targeted advertising.
This makes news content hugely valuable for the digital platforms. Yet Google and Facebook do not currently pay Australian media companies for this valuable content.
Australian media companies can’t avoid using the digital platforms to reach news consumers. Conversely, no single individual media business is critical to the platforms. The result is a significant imbalance in bargaining power.
That’s why we need a News Media Bargaining Code. To survive, local news media businesses must be able to negotiate a fair contribution to the cost of creating content that directly contributes to significant local profits made by Google and Facebook.
A fair and reasonable News Media Bargaining Code
The final Code must include:• Final offer arbitration – this clear and straightforward arbitration model limits incentives on each party to make ambit claims. This is a far more appropriate model than the more traditional slow and expensive arbitration approaches.
• Strong protection against discrimination – in other jurisdictions Google has used its bargaining power to avoid making a fair contribution towards the cost of content creation. Facebook has threated to do the same in Australia. The Code must include protections against these unreasonable tactics.
• Cover all services – The Code must apply to the full suite of products offered by Google and Facebook, including Google Search and its variants, Facebook News feed, and Instagram.
• Information exchange – The digital platforms must be required to exchange all relevant information with news media businesses that is required for a fair and balanced commercial negotiation.Dispelling the myths about the Code
Internationally, digital platforms have been slow to agree to the proposition that they should pay a fair value for the news media content they use.It is a fact that the Code will not require the platforms to provide any additional user data to news media companies. The Code will not stop them from making changes to their algorithms, or require special treatment for news media businesses.
We agree that the Code must be fair to all parties and take into account relevant costs and benefits, including any potential “undue burden” on the platforms’ commercial interests.
Legislating a Code quickly
It is great news for Australians that the Morrison Government has committed to act on this legislation before the end of the year.Google has publicly said it wants to help fund the future of Australian media. That is certainly something that we welcome. Supporting a fair and reasonable Code is the first step. The Code is essential to arrest further declines in professional news content in Australia – something our democracy depends on.
This is a critical moment in public policy development. It is too important to miss.
A who’s who of media signatures. on that release.
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Interesting that the circle 10 inspired WIN logo was used, rather than that of the WIN Network.
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Except for Marks, who is about to become a nobody.
Something which is only possible because of good old self-interest…
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This is good news for the public broadcasters
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ABC statement on the News Media and Digital Platforms Code
Statement from David Anderson, ABC Managing Director:
The ABC welcomes the Government’s decision to include the ABC in the bargaining and arbitration arrangements on remuneration in the proposed News Media and Digital Platforms Code.
As I have stated publicly several times, the ABC is committed to reinvest any additional revenues derived from negotiations under the mandatory code directly into regional journalism.
The inclusion of the ABC in the remuneration arrangements under the Code has the potential to provide a major boost to coverage of regional Australia, telling and sharing local stories. This is particularly important at time when there has been a withdrawal of some local commercial media.
Statement from News Corp Australasia executive chairman Michael Miller
This important News Media Bargaining Code legislation is a significant step forward in the decade-long campaign to achieve fairness in the relationship between Australian news media companies and the global tech giants.
All we have ever sought is a fair commercial outcome and fair payment for the valuable news content our journalists create. I believe this code puts in place the framework for this to be achieved.
As a result of their lobbying, the tech platforms have won concessions, and there should be nothing stopping them now from reaching fair commercial agreements. Ultimately, this Code will benefit Australian consumers by helping sustain Australian news from Australian media companies.
I understand why, in the face of the Covid crisis, the code will not be made law this year as originally planned, and I look forward to working with all participants to have the code in place in early 2021.
I thank the ACCC, the federal government and other parties that have set Australia up to achieve this landmark piece of legislation.
Google ANZ vice president Mel Silva wrote yesterday that the draft News Media and Digital Platforms Mandatory Bargaining Code, which was recently introduced in Federal Parliament, was still unworkable. Silva made several suggestions including a model where Google would pay Australian news businesses through the $1.38 billion Google News Showcase, a standard commercial arbitration model for deals on News Showcase, and amend the algorithm notification provision so it’s feasible. She wrote that her company would continue to engage constructively with the Federal Government, MPs, the news industry and the ACCC to achieve a Code that would work for everyone.
Google is seemingly getting prepared to block Australian news websites.
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Wow. That’s a disgrace. I noticed this the other day when I was looking for the latest breaking news on something.
It gave me The News Daily and overseas links but not The Sydney Morning Herald which had it as their top story.
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No, pretty typical how the social media companies do things.
Free TV calls for speedy action on Code
In its submission to the Senate Economics Committee, Free TV Australia has called on Parliament to stand up to the bullying tactics of the digital platforms and to implement the news media bargaining Code as soon as possible.
Free TV Chairman, Greg Hywood said “There has rarely been a more important time for Australians to be able to access credible, reliable information and verified facts.
“Parliament now has the opportunity to pass the news media bargaining Code which will ensure that Google and Facebook pay a fair price for the quality news content that all Australians rely on,” Mr Hywood said.
The Free TV submission strongly supports the Code and outlines key changes to ensure that:
- all digital platform services that Australians rely on to access news are covered by the Code, including Facebook News Feed, Instagram, Google Search, Google Discover and Google News
- the protections for news media companies against punitive responses by Google and Facebook are strengthened and expanded to cover all forms of content
- Final Offer Arbitration is retained, but further guidance is given to the arbitration panel on how to take into account the “public good” and indirect benefit to the platforms of news content
- the “primary purpose” test for news content be amended so that media companies, like TV broadcasters, that create news content from a variety of news sources, are covered by the Code
- the digital platforms are required to openly and transparently disclose the types of data they collect from the users of news content, as this is one of the key drivers of the value that news content creates for both Google and Facebook.
Free TV Chief Executive Officer, Bridget Fair, said: “Last week we saw a breathtaking display of Google’s market power in deliberately withholding news content from Australians.
“We urge the Parliament to progress this legislation quickly so that negotiations on fair payment for news content can begin without any further delay,” Ms Fair said.